________ refers to a measure of the sensitivity of demand to changes in price.
A) Price elasticity
B) Cross-elasticity of demand
C) Elasticity of substitution
D) Marginal utility
E) Income elasticity of demand

Question

Quizplus · Accepted Answer

Price elasticity of demand measures the percentage change in quantity demanded of a good or service in response to a percentage change in its price. It reflects the degree of responsiveness of buyers to changes in the price of a good or service.

________ Refers to a Measure of the Sensitivity of Demand